The Melrose City Council met in a Regular Meeting on Thursday, May 18, 2017 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Tony Klasen, Justin Frieler, Dick Christenson, and Josh Thieschafer, Mayor Joe Finken, City Administrator Michael Brethorst, and City Clerk Patti Haase. Mayor Finken presided thereat.
The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Thieschafer, seconded by Mr. Klasen and unanimously carried to approve the agenda as amended.
Mayor Finken then opened the floor to public comment. There were no comments.
The following items were considered for approval under the Consent Agenda:
• the minutes from the Council’s April 20 Local Board of Appeal and Equalization Meeting, the April 20 Special Joint Meeting with the Utilities Commission, and the April 20 Regular Meeting.
• list of bills in the amount of $456,571.32.
• list of investments for the month of April.
1) proposed Resolution No. 2017-27, Resolution Approving Gambling License to the Melrose Area Chamber of Commerce for an exemption from lawful gambling license to conduct a bingo on June 23-24, 2017 at the Riverfest Celebration at 206 5th Ave NE.
2) proposed Resolution No. 2017-32, Resolution Approving Gambling License that would grant a gambling license to the Melrose Lions for a permit at JD’s Tap House – 209 Main Street E.
The Council to give consideration to approval of the following Temporary On-Sale 3.2% Malt Liquor License application:
Melrose Chamber of Commerce for the Riverfest Celebration, June 23-24, 2017.
Approval of the license should be contingent upon receipt of the necessary certificates of insurance as to dram shop and general liability coverage.
On May 14, Police Officer Matt McDonald will complete three years of service although Mr. McDonald is on military leave. Police Chief Craig Maus conducted a review and it is favorable; therefore, recommends approval of a step increase from Step 1 to Step 2.
Ambulance Coordinator Jenn Tschida is requesting approval be given to the appointment of Holly Berscheit to the Ambulance Department, contingent upon her passing the pre-employment physical and drug test. If approved, she could start with the Department on June 1.
On May 19, Police Chief Craig Maus will complete three years of service as Chief for the City. City Administrator Brethorst has conducted a review and it is favorable; therefore, recommends approval of a step increase from Step 6 to Step 7.
A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried to approve the Consent Agenda items.
Finance Director Tessa Beuning presented the General Fund Financial First Quarter Report. Director Beuning noted that the General Fund revenue is at 6% and the expenditures are at 15%. Revenues are low because the first half of property tax revenue is not received until June. Also, the first half of LGA is not received until July. Property tax and LGA together make up 76.3% of the revenue budget. The first half of set aside transfers will be made in June, so this impacts overall department budget to actuals for financial administration, police, streets and parks. MADA expenditures have well exceeded budget at 165%. This relates to the necessary costs relating to professional fees for various projects. These costs are planned to be recouped by future TIF funding or state grant proceeds.
Police Chief Craig Maus presented the Police Department’s April report. He noted there were 241 calls for service during that month, compared to 450 for April 2016. There was a total of nine written citations and 42 verbal warnings for the month of April 2017. The year-to-date number of calls is 1013 compared to 1382 in 2016. For the month of April 2017, the Department received 29 agency-assist calls. The Police Department has begun annual spring Nuisance Housing Code inspections. Chief Police Maus also noted that May 15 was Peace Officer Memorial Day and National Police Week is from May 15-21, 2017.
Community Development Director Creelman provided an update on the Planning and Zoning Commission’s May 1 meeting. The Commission held Public Hearings on the Conditional Use Permit requests from J-T Inc. and Joe Arceneau and the Variance request from J-T Inc., which will be addressed later in the meeting.
City Attorney Scott Dymoke reported on projects he has been working on for the City.
• Community Development: Jennie-O Turkey Store (JOTS) Project: Worked with City staff to prepare utility easements and BDPI Declaration. Worked with City staff to determine EAW requirements for the project.
• Community Development: Willow Project: Worked with City staff to prepare restated purchase agreements to address additional requirements of JOTS project.
• Community Development: St. Mary’s Church: Worked with City staff to determine EAW requirements for new facility and preparation of correspondence to Church officials notifying them of EAW requirements
• Community Development: Zoning & Subdivision: Worked with City staff to determine zoning and subdivision requirements for possible future development projects.
Community Development Director Creelman stated that at the Planning and Zoning Commission’s May 1 meeting, a public hearing was held and recommendation was made to the Council that the Conditional Use Permit (CUP) for Leedstone be approved. The CUP was received to accommodate a request submitted by J-T of Melrose for the expansion of the warehouse facility. Council Member Thieschafer noted that the Zoning Code defines durable material as (Improved and maintained with asphalt or concrete pavement or such other surface as may be approved by the City, to provide a durable and dust-free surface. Does not include gravel or crushed rock); therefore, he is recommending Stipulation No. 4 be amended to meet these criteria.
After further discussion, Mr. Thieschafer introduced Resolution No. 2017-28, Approving Case No. 2017-402, Application from J-T of Melrose, Inc. to Expand the Existing Warehouse Facility as Allowed by a Conditional Use Permit in a Commercial Highway District (Parcels 66.36887.0004, 66.36887.0001, 66.37009.0502 and 66.37009.0504) as amended changing stipulation No. 4 to read durable material to be defined as per the City Zoning Code (Improved and maintained with asphalt or concrete pavement or such other surface as may be approved by the City, to provide a durable and dust-free surface. Does not include gravel or crushed rock). The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Member Thieschafer, Klasen, Christenson, Frieler and Mayor Finken; Against: None.
Director Creelman then noted that at the Planning and Zoning Commission’s May 1 meeting, a public hearing was held and recommendation was made to the Council that the Variance for Leedstone be approved. The Variance is received to accommodate a request submitted by J-T of Melrose for the expansion of the warehouse facility. The Variance addresses side yard setbacks as well as structural lot coverage.
Council Member Christenson introduced Resolution No. 2017-29, Variance Requested by J-T of Melrose Inc. For Side Yard Setbacks and Structural Lot Coverage (Parcels 66.36887.0004, 66.36887.0001, 66.37009.0502 And 66.37009.0504). The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Member Christenson, Klasen, Thieschafer, Frieler, and Mayor Finken; Against: None.
Director Creelman stated that at the Planning and Zoning Commission’s May 1 meeting, a public hearing was held and recommendation was made to the Council that the Conditional Use Permit (CUP) for Arce Auto be approved. The request for the CUP is to build a new auto repair facility in the Commercial Highway District.
At that meeting, an issue was addressed about the ingress/egress for the property and how this may affect traffic congestion. The Commission requested that the Council address this issue further. The Community Development Director and the Streets/Parks Supervisor have explored this issue and staff believes that closing the east ingress/egress and widening the western ingress/egress will improve the traffic flow and limit the safety hazard. The resolution has been amended under stipulation No. 5 to explain the solution for the traffic and safety problem. The CUP is received to accommodate a request submitted by Joe Arceneau for the construction of a new auto repair facility.
Council Member Klasen stated that in order to address the ingress/egress, verbiage should be as per the Planning and Zoning Commission report. Council Member Thieschafer stated that the parking lot also needs to conform to the City Zoning Code. Mr. Arceneau stated that if he is required to pave the parking lot, his taxes would increase exponentially.
After further discussion, Council Member Thieschafer introduced Resolution No. 2017-30, Resolution Approving Case No. 2017-401 Application from Joseph Arceneau to Build A New Auto Facility as Allowed by CUP in a Commercial Highway District (Parcel 66.36667.0008) as amended No. 5 of the determining factors to read as follows: Planning and Zoning Commission determined that access to or from the property by means of Country Club Rd. SW is sufficient to minimize the potential for any traffic congestion as long as the east ingress/egress is entrance only and stipulation No. 5 to read durable material to be defined as per the City Zoning Code. (Improved and maintained with asphalt or concrete pavement or such other surface as may be approved by the City, to provide a durable and dust-free surface). The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Member Thieschafer, Frieler, Christenson, Klasen, and Mayor Finken; Against: None.
Mayor Finken stated that on April 18, 2016, the City and Willow Express entered into: (a) a Purchase Agreement with for the sale of part of Lot 6, Block 1, East Acres Plat Two, and (b) a Development Agreement regarding the proposed expansion of Willow’s trucking facilities. At the time, Melrose and Willow anticipated closing on the sale on May 26, 2016. The closing on the sale was subsequently rescheduled for June 30, 2016, but due to difficulties in complying with the CUP for the proposed construction, the closing has not occurred. In addition, the City has since identified additional utility easement requirements that need to be retained in the property to be sold. Willow has addressed its difficulties in complying with the CUP and wishes to proceed to close on the sale.
Given the length of the delay in closing and the changed circumstances regarding utility easement requirements, a restated Purchase Agreement has been prepared as revision to the ingress and egress and parking lot with durable material as defined by code.
A motion was made by Mr. Thieschafer, seconded by Mr. Christenson and unanimously carried approving the restated Purchase Agreement and authorize City staff to execute documents necessary to complete the transaction.
Mr. Thieschafer left the meeting at 6:30 p.m.
Mayor Finken stated that a notice has been sent by Street/Parks Supervisor Gary Middendorf to the property owner at 604 3rd Ave NE requesting that the grass be cut. As per City Code 95.38, all property owners shall be responsible for the removal, cutting, or disposal and elimination of weeds, grasses, and rank vegetation or other uncontrolled plant growth on their property that, at the time of notice, is in excess of eight inches in height. It is recommended that the Council approve the destruction orders as it then becomes effective for one year from the date of notice, meaning that if at any time after the issuance of the notice a violation reoccurs, the City shall abate the weeds without further notification to the property owner. It should be noted that any unpaid grass cutting bills can and will be certified against the property prior to year-end.
A motion was made by Mr. Frieler, seconded by Mr. Klasen and unanimously carried approving the destruction order for 604 3rd Avenue NE.
Mayor Finken noted that the Council, at its July 26, 2016 meeting, adopted Resolution No. 2016-27, Approving the Business Development Infrastructure Application to the Minnesota Department of Employment and Economic Development (DEED) for funding from the Business Development Infrastructure Grant for the Jennie-O Turkey Store Project. The City of Melrose received the grant from DEED for $1,000,000; therefore, in accordance with the agreement, a resolution must be passed to pledge commitment to fund the City’s share for the infrastructure project in the amount of $2,942,399.
A motion was made by Mr. Christenson, seconded by Mr. Frieler and unanimously carried adopting Resolution No. 2016-27, Approving the Business Development Infrastructure Application to the Minnesota Department of Employment and Economic Development (DEED) for Funding from the Business Development Infrastructure Grant for the Jennie-O Turkey Store Project.
Mayor Finken stated that the City has several outstanding projects that are all contingent on State of Minnesota funding. A significant amount of work has been completed to date relating to the plans for the 5th Ave NE Bridge, 1st Street NE reconstruction, Kraft Lot re-plat, Kraft retaining wall and 400 Block planning.
The Council has directed that planning efforts stop pending final determination for the various State funding streams. Due to the fact, the City meets monthly and keep on time, it is proposed to coordinate final plans and processes. It is proposed that once the State of Minnesota passes the tax bill and bonding bills, the City start the final planning and engineering process for:
• 1st Street NE reconstruction
• Kraft retaining wall
• Kraft Lot re-plat
• 400 Block planning (pending property owner’s decision)
• 5th Ave NE Bridge
Mr. Klasen stated that he would like to revisit the 5th Ave NE Bridge design and reconsider moving the bridge to the north.
Mr. Frieler noted that although we do not want to lose the State funding, we want to do it right.
A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried authorizing WSB & Associates to provide final planning and engineering quotes for the aforementioned projects upon passage of State funding and brought before the Council for formal consideration at the next regular meeting.
Mayor Finken noted that the City is working jointly with Jennie-O Turkey to complete the final permitting and regulatory review which is called an Environmental Assessment Worksheet (EAW). SEH has been assisting the Utilities Commission to complete the water and sewer extension for the project site as well as City Attorney Scott Dymoke. SEH was chosen for this work since the utilities will directly impact the Water/Wastewater Facility. SEH is the consulting engineer for the Utilities Commission relating to environmental issues. Additionally, SEH has a very strong reputation with managing EAW processes.
In accordance to regulatory guidelines, the City will need to consult with an environmental specialist for this work. Due to the time lines for this project, SEH has been consulted to perform said reviews and consulting services. It is anticipated, the work to perform these services will be less than the purchase limits for contracted services. This work will be reimbursable under future TIF payments.
The following informational items were reviewed:
the minutes from the Utilities Commission’s April 10 Regular Meeting.
EMS Week is May 15-21. This year’s theme is “Always in Service”. Randy Dufner will be recognized for 20 years of service and Jenn Tschida and Sandy Yurczyk for 15 years of service.
The following are schools and/or conferences where registrations were made:
1) Active Shooter Training, May 18 in St. Cloud Attending: Office Assistant I Doris Rieland.
2) Revenue Recapture Webinar Training, May 9. Attending: Office Assistant II Sharon Blaskowski.
3) Civic Training, May 16 in St. Cloud. Attending: Office Assistant II Sharon Blaskowski.
The Minnesota Department of Revenue Correspondence on the Volunteer Tax Preparation Program.
• Permit Log: First Quarter 2017 permit log has been filed with the state and the breakdown is as follows:
2017 2016 2015 2014 2013
23 14 15 12 7
$504,221 $290,700 $497,792 $297,027 $48,878
Records Manager/Police Secretary Judy Weber has submitted her Notice of Retirement effective June 30, 2017. Ms. Weber will have 22 years of service with the City of Melrose. As per the historical direction of the Council, a full staff review of the position will be conducted. The Council, by consensus, scheduled a special meeting for Thursday, May 25, 2017 at 6:00 p.m. to review the Records Manager/Police Secretary position.
A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried that the meeting be adjourned at 7:00 p.m.
Patricia Haase, City Clerk
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